HOUSE BILL 512

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Jim R. Trujillo

AN ACT

RELATING TO BUSINESS; ENACTING A NEW SECTION OF THE CONSTRUCTION INDUSTRIES LICENSING ACT; PROVIDING FOR THE REGULATION OF PROPANE DEALERS; PROVIDING PENALTIES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the Construction Industries Licensing Act is enacted to read:

     "[NEW MATERIAL] PROPANE SALES--COMMISSION DUTIES.--

          A. The commission shall adopt rules to regulate propane sales that include requirements that:

                (1) a propane advisory committee be appointed, no later than ninety days after the effective date of this section, that shall include propane consumer representation equal to or greater than the proportion of propane industry representation;

                (2) consumers be informed in writing by the propane dealership from which the consumer is receiving goods and services, as a component of monthly billing statements, of the following:

                     (a) the commission will receive and review consumer complaints;

                     (b) the consumer is obligated to attempt remedy for complaints with the dealership against which the complaint is being filed;

                     (c) the response time of the dealership to the consumer complaint shall not exceed one billing cycle or thirty days, whichever is less;

                     (d) contact information for the commission and the proper process to pursue a complaint;

                     (e) the average pricing alterations and variations applied to present and future billing cycles;

                     (f) price ranges to the consumer base of the given dealership;

                     (g) a short description defining the justifications for the price variations;

                     (h) propane industry pricing averages in the consumer's region of service;

                     (i) all price alterations that will have an impact, including increases or decreases, on the consumer's present or future billing cycle;

                     (j) justification for any pricing alterations, prior to changes or by special notification, if changes will affect the current billing cycle;

                     (k) conversion formulas for a unit of propane to gallons, cubic feet or thermal units;

                     (l) the dealership's participation in the low income home energy assistance program;

                     (m) criteria for qualifying for the low

income home energy assistance program; and

                     (n) the tank rental fee and any changes in that fee;

                (3) propane dealerships notify consumers in writing of a disconnection or discontinuation of services seven working days prior to service termination;

                (4) the consumer has the right to change propane dealerships, without financial or service-related penalties, if the consumer is justly dissatisfied with either uncompetitive or unclear pricing variation practices or the service provided by a dealership;

                (5) individual dealership pricing, including special service charges such as non-scheduled deliveries, be printed on a clearly posted form available in English and Spanish in the propane dealer's office, on the interior and exterior of the propane dealership, and if the dealership is aware of a consumer's status of disability, the form be provided in a format appropriate to the needs of the consumer;

                (6) propane dealerships not charge additional fees or penalties for any services provided during a state of emergency such as severe weather;

                (7) during an emergency, propane dealerships provide minimally necessary services to consumers of competitor dealerships if the competitor is unable to do so, and the dealerships providing the emergency services not charge penalties or service charges that exceed the price agreed to pursuant to the competitor's existing consumer contract;

                (8) the consumer has the right to purchase and use the consumer's own tank, in conjunction with all propane dealerships; provided that all federal, state and local safety regulations are adhered to;

                 (9) the consumer may, in a case of service termination, rent a tank from the dealership that is providing new services;

                (10) dealerships whose service agreements are terminated recover proprietary tanks within thirty days from the date of service termination, and the dealership provide an estimated retrieval date for the tanks;

                (11) in the case of service termination, the consumer has the right to be present when the dealership measures the remaining volume;

                (12) propane dealerships receiving funding from the low income home energy assistance program be subject to the winter moratorium program;

                (13) dealership employees or agents providing services on proprietary consumer equipment and private property be licensed pursuant to law;

                (14) upon service termination, the consumer be refunded by the terminated dealership for any unused propane, and the refund be based upon the price of propane and services agreed to during the billing cycle immediately prior to the date of service termination, and mailed to the consumer within fifteen days following tank removal. If the tank is owned by the consumer, the refund will be mailed within fifteen days of service termination; and

                (15) propane dealerships register all prices and price justifications with the commission.

          B. A person who violates a rule adopted by the commission pursuant to this section is guilty of a penalty assessment misdemeanor. As used in this section, "penalty assessment misdemeanor" means violation of a provision of this section for which the following listed penalty assessment is:

                (1) two hundred dollars ($200) for the first violation;

                (2) five hundred dollars ($500) for a second violation within five years of the first; and

                (3) eight hundred dollars ($800) for a third or subsequent violation within five years of the first."

- 6 -